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🏆 15 Quality stocks with skin in the game

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🏆 15 Quality stocks with skin in the game

Compounding Quality
Dec 29, 2022
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🏆 15 Quality stocks with skin in the game

www.compoundingquality.net
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Are you looking for investment inspiration?

In this article, you’ll find 15 quality stocks with skin in the game.

This means the company is run by their founders and/or in which a controlling family owns a significant share.

Skin in the Game - Overview, Requirements, Disadvantages

Company 1: Copart ($CPRT)

Copart provides vehicle suppliers, primarily insurance companies, with a variety of services to process and sell salvage vehicles through auctions.

  • Profit Margin: 31.1%

  • ROIC: 23.5%

  • Earnings Yield: 4.0%

  • Expected yearly EPS Growth (next 3 years): 11.0%

  • CAGR since IPO: 20.2%

Company 2: Arista Networks ($ANET)

Arista Networks provides cloud networking solutions for data-centers and computer environments.

  • Profit Margin: 28.5%

  • ROIC: 29.4%

  • Earnings Yield: 4.2%

  • Expected yearly EPS Growth (next 3 years): 20.6%

  • CAGR since IPO: 33.1%

Company 3: LVMH ($MC)

LVMH is a diversified luxury goods group. The Company produces and sells wine, cognac, perfumes, cosmetics, luggage, watches, and jewelry.

  • Profit Margin: 18.7%

  • ROIC: 15.7%

  • Earnings Yield: 4.4%

  • Expected yearly EPS Growth (next 3 years): 9.2%

  • CAGR since IPO: 13.6%

Map Of Brands In Luxury Fashion: LVMH (OTCMKTS:LVMUY) | Seeking Alpha

Company 4: Lifco ($LIFCO-B)

Lifco provides dental products, machinery and tools, sawmill equipment, contract manufacturing, vehicle interiors, and environmental technology.

  • Profit Margin: 13.7%

  • ROIC: 15.3%

  • Earnings Yield: 3.5%

  • Expected yearly EPS Growth (next 3 years): 3.6%

  • CAGR since IPO: 33.3%

Company 5: Evolution AB ($EVO)

Evolution operates as a gaming company. The Company develops, produces, markets and licenses fully integrated B2B live casino solutions to online casino operators.

  • Profit Margin: 56.7%

  • ROIC: 21.5%

  • Earnings Yield: 5.1%

  • Expected yearly EPS Growth (next 3 years): 14.7%

  • CAGR since IPO: 72.3%

Company 6: L’Oréal ($OR)

L'Oreal manufactures cosmetics. The Company offers mascara, lip gloss, foundation, eyeshadow, primer, nail polish, lipstick, face powder, blusher, and concealer, as well as skin, hair, and body care products.

  • Profit Margin: 14.2%

  • ROIC: 15.2%

  • Earnings Yield: 3.4%

  • Expected yearly EPS Growth (next 3 years): 8.6%

  • CAGR since IPO: 14.3%

L'Oréal Joins U.S. Plastics Pact and Commits to Sustainable Beauty  Packaging by 2025 | Allure

Company 7: Nike ($NKE)

Nike designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children.

  • Profit Margin: 12.9%

  • ROIC: 19.7%

  • Earnings Yield: 3.0%

  • Expected yearly EPS Growth (next 3 years): 9.2%

  • CAGR since IPO: 16.8%

Nike Running Shoes for Sale in Nike Shoe Store Display Editorial Image -  Image of life, sneakers: 65626830

Company 8: Ferrari ($RACE)

Ferrari NV designs and manufactures sports cars. The Company offers new and used vehicles, warranty programs, financial supports, and maintenance, as well as watches, apparels, earphones, caps, and other accessories.

  • Profit Margin: 19.5%

  • ROIC: 18.9%

  • Earnings Yield: 2.8%

  • Expected yearly EPS Growth (next 3 years): 11.5%

  • CAGR since IPO: 26.1%

Company 9: Moncler ($MONC)

Moncler S.p.A. manufactures apparel products. The Company provides sporting garments for mountaineering.

  • Profit Margin: 19.2%

  • ROIC: 17.6%

  • Earnings Yield: 4.4%

  • Expected yearly EPS Growth (next 3 years): 6.4%

  • CAGR since IPO: 20.1%

Company 10: Monster Beverage ($MNST)

Monster Beverage markets and distributes energy drinks. Monster Beverage serves customers worldwide.

  • Profit Margin: 24.9%

  • ROIC: 18.5%

  • Earnings Yield: 2.8%

  • Expected yearly EPS Growth (next 3 years): 16.1%

  • CAGR since IPO: 19.3%

Company 11: XPEL ($XPEL)

XPEL develops and manufactures automotive protection products offering window and protective film for the painted surfaces of automobiles.

  • Profit Margin: 12.2%

  • ROIC: 30.8%

  • Earnings yield: 2.4%

  • Expected EPS Growth next 3 years: 31.4%

  • CAGR since IPO: 25.3%

Company 12: Netease ($NTES)

NetEase operates as a leading internet technology company providing online services including content, community, communication, and commerce.

  • Profit Margin: 19.2%

  • ROIC: 12.1%

  • Earnings Yield: 6.7%

  • Expected yearly EPS Growth (next 3 years): 7.9%

  • CAGR since IPO: 23.2%

Company 13: Veeva ($VEEV)

Veeva Systems provides cloud-based software. The Company offers enterprise application, multichannel platform, customer relationship, and content management solutions.

  • Profit Margin: 23.1%

  • ROIC: 12.0%

  • Earnings Yield: 2.6%

  • Expected yearly EPS Growth (next 3 years): 31.7%

  • CAGR since IPO: 26.1%

Company 14: Paycom ($PAYC)

Paycom provides data analytical software products to manage the employment life cycle from recruitment to retirement.

  • Profit Margin: 18.6%

  • ROIC: 22.2%

  • Earnings Yield: 2.2%

  • Expected yearly EPS Growth (next 3 years): 28.6%

  • CAGR since IPO: 41.8%

Paycom Software Reviews, Demo & Pricing - 2022

Company 15: Fortinet ($FTNT)

Fortinet, Inc. provides network security solutions. The Company offers network security appliances, software, and subscription services.

  • Profit Margin: 18.2%

  • ROIC: 59.9%

  • Earnings Yield: 2.6%

  • Expected yearly EPS Growth (next 3 years): 23.7%

  • CAGR since IPO: 33.0%

Overview

Did you find this article interesting? Here is an overview of all companies mentioned:

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About the author

Compounding Quality is a professional investor which manages a worldwide equity fund with more than $150 million in Assets Under Management. We have read over 500 investment books and spend more than 60 hours per week researching stocks.

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🏆 15 Quality stocks with skin in the game

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🏆 15 Quality stocks with skin in the game

www.compoundingquality.net
Julian
Feb 5Liked by Compounding Quality

It would be great to add, expected topline growth (next 3 years), moat levels, rationale for investing, risks: Moncler might have been a great stock but there is little evidence that the great brand effect will persist indefinitely whereas LVMH, L’Oreal offer better risk returns with solid scale effects, dominant presence, great management

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Corrado Battista
Jan 22Liked by Compounding Quality

Hello .... Who made the selections for this list of 15 companies ? Thank you

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